Determine the EOQ and total cost of ordering at this value

Assignment Help Operation Management

Reference no: EM13954248

Electronic Village is open 325 days a year and stocks and sells a particular brand of personal computer. It cost the store $350 each time it places an order with the manufacturer for the personal computer which are valued at $950. After placing the order it takes 5 days to receive the PC which has an annual holding rate of 25%. The store manager estimates that annual demand for the PC’s will be 1300 units with a daily standard deviation of 2 units.

Determine the EOQ and the total cost of ordering at this value.

Calculate the ROP at a 95% service level.

State the ordering policy for this item.

Reference no: EM13954248

Questions Cloud

Problem regarding the closing entries for nordstrom : The following accounts appear on Nordstrom's 2011 financial statements as reported in its Form 10-K for the fiscal year ended January 28, 2012. The accounts are listed in alphabetical order, and the balance in each account is the normal balance fo..

What is the optimal number of days between orders : Joe's Camera shop has a favorite model that has annual sales of 145. The cost to place an order to replenish inventory is $25 per order, and annual inventory costs are $20. Assume the store is open 350 days per year. What is the optimal order size? W..

Main components of the pure food and drug act : What are the main components of the Pure Food and Drug Act of 1906? How was this law attempting to protect the public? What are the main components of the Sherley Amendment: How was this law attempting to protect the public?

Prove that if x is a discrete random variable : Use the result of problem 1 above to show that the average number of heads when a fair coin is flipped n times is equal to n/2.

Determine the EOQ and total cost of ordering at this value : Electronic Village is open 325 days a year and stocks and sells a particular brand of personal computer. It cost the store $350 each time it places an order with the manufacturer for the personal computer which are valued at $950. Determine the EOQ a..

Transactional leadership approach : The previous manager used a transactional leadership approach, which has been relatively ineffective. Evaluate one leadership style and describe which you would take. An experienced executive assistant discovered that she made the same amount of mone..

Use non-sister chromatids to demonstrate crossing : I have attached two labs with corresponding post lab work sheet for you to complete. 1. Why are chromosomes important?

How many customers would be expected to have a balance below : If you were to draw another random sample of 20 observations from the same population, what is the probability that you would find a larger sample mean than the value you calculated in question 1?

Community participation-involvement in health promotion : What are the barriers and challenges for community participation/involvement in health promotion in your community (e.g.: city, region, ward etc.) and demonstrate how intersectoral collaboration helps in achieving the positive community health?

User Account

All Pages